Hi,

I need a little help explaning the scenario below.

Compare the actual cost of goods sold over the last month and evaluate the company's performance against the budgeted benchmarks. Interpret the performance and explain what happened.

Beginning Work in Process Inventory		$ -
Direct Materials:
Materials: Beginning	0
Add: Purchases for month of January	$ 20,000
Materials available for use	20,000
Deduct: Ending materials	(4,000)
Materials Used		16,000
Direct Labor		8,493
Overhead		3,765
Total Costs		$ 28,258
Deduct: Ending Work in Process Inventory		0
Cost of Goods Sold		$ 28,258